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Thomas StorringDirector – Economics and Statistics
Tel: 902-424-2410Email: thomas.storring@novascotia.ca

March 09, 2020
BUILDING PERMITS, JANUARY 2020

The monthly value of building permits (seasonally adjusted) issued in Nova Scotia increased 15.9 per cent in January, following a (revised) decrease of 15.5 per cent in December. Nova Scotia's residential permits rose 13.3 per cent while non-residential building permits increased 22.3 per cent. Monthly results for building permits are highly volatile.

The six-month moving average of residential permits trended modestly upwards through 2017 and then declined in early 2018.  Afterwards, residential permits resumed an upward trend before flattening out over the 2019. The six-month moving average for non-residential permit values remained relatively flat from mid-2017 to late 2018. Since early 2019, non-residential permits have trended upward but have peaked at the end of the year.

The trend in Nova Scotia building permit values largely reflects the trends in the Halifax market. The value of Halifax building permits rose 26.3 per cent in January, reflecting a 24.8 per cent rise in residential permit values and a 30.3 per cent rise in non-residential permit values. 

The six-month moving average for residential permits in Halifax has been rising since mid-2016 except for a decline in the fall of 2017 and early 2018. Since then, Halifax residential permits trended upward before flattening out over the 2019. Non-residential permits in Halifax trended down starting in June 2017, though they have trended upward since the spring of 2019.

Outside the Halifax market, building permit values declined 0.3 per cent in January 2020, reflecting a decline in residential permits (-4.9 per cent) and a rise in non-residential permits (+10.6 per cent).  Non-residential permits trended upward outside of Halifax from mid-2017 to mid-2018 but have remained relatively flat since then. Residential permits have trended upward at a modest pace since mid-2017.

In January 2020, the value of Nova Scotia building permits was down 23.9 per cent compared to January 2019.  Residential permits are 36.2 per cent lower and non-residential permits are up 38.4 per cent for year-to-date.  The increase in non-residential building permits reflects rise in commercial permit values by 62.7 per cent and industrial permit values by 61.4 per cent. There is decline in institutional/government 72.3 per cent permit values.

Halifax building permits were down 28.7 per cent in January 2020 on strong gains in the non-residential sector (+99.5 per cent), while building permits outside of Halifax were down 12.3 per cent.

Building permits in Nova Scotia's five economic regions totaled $95.8 million (unadjusted) in January 2020.  The largest contributor was the Halifax region, with a combined residential and non-residential permit value of $76.4 million. In January 2020, the total value of residential and non-residential permits was up in North Shore and Halifax region. Total permits declined in Annapolis Valley and Southern regions, and remained same in Cape Breton region, compared to January 2019.

In January 2020, the number of residential dwelling-units created (seasonality adjusted) in Nova Scotia was down by 372 units compared to the January 2019.  The number of single units was up for both Halifax (+48) and Nova Scotia outside of Halifax (+7). The number of multiple units created was down for both Halifax (-351) and Nova Scotia outside of Halifax (-75).

Nationally, residential building permit values (seasonally adjusted) were on an upward trend in 2016 but have levelled off since early 2017. National residential building permits were up 12.7 per cent in January. Non-residential building permit values rose through 2017 and peaked toward the end of the year, remaining relatively flat through 2018.  Since the end of 2018, non-residential permits have risen modestly.  National non-residential permit values were down 7.8 per cent in January.

Comparing January 2020 with January 2019, national residential building permit (seasonality adjusted) values were up 8.5 per cent, with increases in four provinces. British Columbia (+45.4 per cent) showed the largest gain in residential permits in percentage terms, followed by Quebec (+22.4 per cent). Nova Scotia (-36.2 per cent) showed the largest decline, followed by Saskatchewan (-30.8 per cent).

National non-residential permits (seasonality adjusted) are up 16.0 per cent in January 2020 compared with January 2019. Newfoundland and Labrador had the largest gains in non-residential building permits (+176.4 per cent) followed by Prince Edward Island (+136.1 per cent). New Brunswick (-58.0 per cent) reported the largest decline, followed by Saskatchewan (-7.7 per cent).

In January 2020, the national value of total (residential and non-residential) building permits was up 11.2 per cent compared to January 2019.  Total building permit values were up in seven provinces in January 2020, led by Newfoundland and Labrador (+93.0 per cent) and British Columbia (+39.8 per cent). New Brunswick reported the largest decline over this period (-35.7 per cent), followed by Nova Scotia (-23.9 per cent).

Source: Statistics Canada Table 34-10-0066-01



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